RDA sues BUK over K1m
Published On November 28, 2017 » 1308 Views» By Davies M.M Chanda » Latest News
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THE Road Development Agency (RDA) is claiming an outstanding sum of K1,050,000 from Buk Truck Parts Limited for using the Agency’s Senkobo Quarry in Kazungula Southern Province.
In a Statement of claim filed in the Lusaka High Court, RDA indicated that the defendant had written to the plaintiff requesting permission to commence quarry works of 80,000 tonnes of granite stone at the Senkobo Quarry to enable them supply part of the 310,000 tonnes granite stones required by Zambia Railways Limited (ZRL).
On February 4, 2014, Buk Truck Parts Limited was granted permission to start quarrying along the line of rail for a period of 10 months renewable for a further term on mutual agreements by the two parties .
A fixed royalty of K105,000 per month payable three months in advance was agreed upon and that the contract sum came to K1,050,000 followed by signing of a lease agreement.
RDA then allowed the defendant to start mobilising equipement on January 6 the same year on the strength of a letter from ZRL which requested that the ballast stone was needed urgently to carry out the project of national interest.
That on April 1,2014 the defendant commenced quarrying at Senkobo Quarry on the understanding that they would pay monthly royalties to RDA and quarried for an extended period of 24 months with a delay in operations due to delay in vacating of the previous lease.
Out of the 21 months’ worth of royalties, the defendant has only paid nine months equivalent of royalties amounting to K945,000 leaving a balance of  K1,260,000 as at December, 2015.
The plaintiff made several demands to the defendants who has made various undertaking to pay the amount off but has only managed to clear an additional sum of K165,000.00 to date.
In an effort to accommodate the plaintiff’s and as a gesture of goodwill, the parties agreed on a payment plan which the defendant has failed to honor on account that it is facing financial challenges.
“The defendant has neglected, refused and failed to settle its indebtedness to the plaintiff and has occasioned the plaintiff’s loss,” read the court document,”
RDA now wants the high court to order for the outstanding payment of K1,050,000, plus interest on the demanded amount and costs.

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